Except for the automatic stay, bankruptcy cases don't have much effect on tax debts that can't be discharged. Once the bankruptcy court issues the discharge, the court clerk will close the bankruptcy case. ... If the bankruptcy case doesn't discharge the IRS tax debt, the IRS will be free to resume collection actions.

Does bankruptcy eliminate IRS debt?

Dismissal: IRS may keep payments, and time in bankruptcy extends time to collect remaining tax liabilities. Discharge: Will eliminate (discharge) tax debts paid in the plan and tax debts older than three years unless returns filed late. Debtor must timely file income tax returns and pay income tax due.

Can you file bankruptcy to keep IRS from taking your house?

Can I keep my house if I file Chapter 13? If you have sufficient income to keep up with your mortgage, you will not lose your house. Chapter 13 bankruptcy involves a 3 - 5 year repayment plan. Long-term secured debts, like home mortgages, remain in place.